Heads of state from six countries as well as the World Bank President joined forces to urge other nations and businesses to put a price on carbon pollution.
They put the spotlight on carbon pricing as a “necessary and effective measure” to tackle the climate challenge at the COP21 conference in Paris.
The call by France, Germany, Mexico, Chile, Ethiopia and Canada was echoed by ministers and CEOs from around the world at the official launch of the ‘Carbon Pricing Leadership Coalition’ (CPLC). It brings together nearly 90 businesses and NGOs.
CPLC’s research revealed firms say the top benefit of carbon pricing is it helps them “translate carbon into business-relevant terms and engage internally” while lack of common method or guidance” is the biggest challenge.
More than 90 developed and developing countries, including the EU, indicated plans to use international, regional or domestic carbon pricing schemes ahead of the Paris talks.
Around 40 nations and 23 cities, states and regions have implemented or are putting a price on carbon with programmes covering around 12% of global greenhouse gas emissions, according to the World Bank.
The World Bank stated: “Pricing carbon can deliver multiple benefits including reducing health and environmental impacts, like premature deaths from exposure to outdoor air pollution. It provides governments with the financing needed to support sustainable development as well as spurring greater investments in low carbon growth.
“Through carbon pricing, countries can provide an incentive for businesses and investors to reduce their exposure to carbon while accelerating investments in clean energy, clean transport and clean technologies.”
World Bank President Jim Yong Kim added: “We simply cannot afford to continue polluting the planet at the current pace, this was the right time to set the right price on the true cost of carbon on our planet.”
Earlier this year the World Bank found the global value of carbon pricing initiatives is just under $50 (£31.5bn) billion. Another research revealed global governments will raise around $22 billion (£14.8bn) this year by putting a price on carbon.